R.S. Dhavan, J. - (1.) This a misconceived petition under section 433 and 434 of the Companies Act, 1956 and an abuse of the process of the Court.
(2.) The petitioner is a scheduled bank : the Bank of Rajasthan. It seeks the winding-up of its client and customer-company, Messrs Jai Mata Plywood Co. (P) Limited, having its registered office at Ghaziabad, in Uttar Pradesh. The reason, a cash credit account of the company with the bank, aforesaid, has been overshot. Thus, the bank desires the winding-up of the company.
(3.) The bank has appended the exercise of documentation by which the cash credit account was open by the company. The documentation which a bank and a client normally exchange between themselves is a bilateral agreement on the basis of which a cash credit account rests. The account was opened initially in 1985 seeking a cash credit limit of Rs. 14 lacs. The company operated the account with the bank. This is evidenced by correspondence and a cash credit statement, a copy of which is Annexure 14. The cash credit limit was backed by a hypothecation facility, a preliminary security by hypothecation of stocks, an equitable mortgage of immoveable properties, a second charge of collateral security being a tripartite agreement with the permission of the U P Financial Corporation and a personal guarantee of the directors.;